Fordel StudiosNvidia reportedly weighs ramping up H200 production to meet surging demand in China
What Happened
After successfully lobbying the Trump administration to approve the sales of its H200 chips to China, Nvidia is now thinking of adding capacity to produce more of the chips.
Our Take
Trump administration approved more chip sales to China, so Nvidia's scaling up H200 production. This is framed as a victory, but it's actually geopolitical theater. The real story? Chip nationalism breaks down instantly when margins are fat enough.
Nvidia didn't fight to sell to China because they're principled. They did it because Beijing's data centers need GPUs, and Nvidia's got the supply. Once profit is on the table, national security policy becomes a negotiation.
China gets compute, Nvidia gets revenue, Taiwan stays in the middle. Everyone wins except the countries pretending chip independence matters.
What To Do
If you're betting on US chip dominance as a moat, don't—geopolitics bend toward whoever's willing to negotiate margins.
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